Monday, June 26, 2017

Don't  Invest  With  Hedge  Funds


I am sure I have struck a nerve with some hedge fund managers with my heading.  I expect some of them to shoot me an email or respond to this blog defending their case.  That is OK by me.  Some Retail Investors who have invested their  401K's  and retirement monies in a mutual fun will be offended by this post too but I want to share with my readers the data I have.  Hopefully it will be an eye opener for most of you and hedge fund  professional managers. 

Some of you who know me very well in person or those of you that have interacted with me online know that I have been an avid reader of   "Barrons"   magazine for over a decade.  I trust the data they have because it is very well researched.  On June 19th, they published a list of 100 top hedge funds and their performance details.  What struck me was that in 2016, the average performance of these hedge funds as compared to the general broad market as measured by  $SPY  was:

  • Hedge funds ... +11.74%  (not including their fees)
  • $SPY            ... +11.96%  (no fees)

Excuse me!  Why would you want to invest your portfolio with a hedge fund if all they can do is worse by   - 0.22%   than what the passive investment in the general broad market?  You all should be asking this question.   To add insults to the injury, they have the nerve to charge you a fee of  +1%  to  +2%  of your account for handling your account.  If you have a portfolio of  $100,000  You are essentially paying them  $1,000 to  $2,000 to help you  lose  money.  Get smart and fire your hedge fund managers and instead spend that money to get educated by a successful mentor.

Growth  Stocks  Investment  Will  Outperform 


I am a Growth Stock Investor and a Trader utilizing a proven method prescribed by   Mr. William J. O'Neil (founder of Investors Business daily).    If you follow his system, you can outperform the market   2  to  2.5  times better.  It's a system with a lot of rules though.  You have to take the time to learn the rules the hard way with trial an error doing it yourself or you can enroll in our mentoring program to get you up and running with confidence.  It is a set of skills where you learn to:

  1. Identify the leading stocks in a leading sector.
  2. Identifying the  "Goldilock Zone"  as a buy area.
  3. Understanding the conditions of the market and the right time to execute an entry.
  4. Learning to get out of the stock at appropriate time to mitigate losses.
  5. Harvesting profits according to your Trade Plan.

Virtual  Trades


In my mentoring program, one of the things that I have my students do is  "Virtual Trades"   These are the trades that you execute on a virtual platform of your brokers.  There is no money at risk and you are placing these trades as if it is done with your real money except it is done with virtual money.  This is to help them practice,  just as professional football players practice in the field or pilots training in a simulator.  Here are some trades that you  can place Monday June 26th as   "Virtual Trade"   to help you sharpen your skills of trading and help you evaluate your own performance.  They may not all get filled on Monday but you can continue to place them every day this week until they get filled.  Look over my Twitter @spotlightamin  for any updates that I may have on these trades.  Plan for  +10%  for profit target and  - 4%  as a loss target

  1. $STMP ... Entry $146.70 
  2. $GRUB ... Entry $ 46.50
  3. $HQY   ...  Entry $ 51.50
Don't ever chase a trade.  Have your rules for profit exit and loss exit defined like I have done here and abide by them.  I will update you on these trades on my tweets when I see it appropriate.  You don't want to hold onto these trades during the earnings report.  You want to exit prior to earnings if none of your targets are met.

Mentoring  Service

Now is the perfect time to enroll in our mentoring service.  We have very few spots left for July.

Contact us at:

investorspotlight@gmail.com


Schedule a FREE 30 minutes of  "Discovery Call"  with us. Learn how best we can coach you and mentor you to help you out perform the market.  Get rid of your hedge fund managers and invest in yourself instead.

Happy Trading!

Amin





        

DISCLAIMER



Do not take a position unless you are prepared to sustain a TOTAL LOSS. Your loss could include the money you invested as well as commissions and transaction charges.


The Information I provide is for education and informational purposes only. The Information provided is not intended to be and does not constitute financial advice, investment advice, trading advice or any other advice. The Information provided is general in nature and is not specific to you or anyone else.


YOU SHOULD NOT MAKE ANY DECISION, FINANCIAL, INVESTMENTS, TRADING OR OTHERWISE, BASED ON ANY OF THE INFORMATION PRESENTED WITHOUT UNDERTAKING INDEPENDENT DUE DILIGENCE AND CONSULTATION WITH A LICENSED PROFESSIONAL. You understand that you are using this Information AT YOUR OWN RISK.